How to Choose the Best HR Software for Midsize Companies

Choosing the right HR software for midsize companies can be a game-changer, significantly improving efficiency, streamlining processes, and fostering a more engaged workforce. With the unique challenges faced by midsize organizations, finding the perfect fit is crucial. In this blog, we’ll walk you through the essential steps to select the best HR software tailored specifically for the needs of your growing company. So, let’s dive in and explore how to make an informed decision that will support your business’s continued success.

  • Identify Your Company’s HR Needs

First things first, you’ll want to identify the specific HR needs of your company. This is crucial because every business is unique, and what might be a great fit for one might not work for another. Think about your company’s size, industry, and HR goals, as well as any specific challenges you’re facing. Once you’ve got a clear understanding of your needs, you’ll be better equipped to find the perfect HR software solution.

Some common HR needs for midsize companies include managing employee records, tracking time and attendance, processing payroll, and handling benefits administration. You might also need tools for recruiting, onboarding, and performance management. Make a list of your must-have features, and keep these in mind as you evaluate different HR software options.

  • Consider Your Budget

Budget is always a factor when making a significant investment like HR software. It’s essential to strike the right balance between affordability and functionality. After all, you don’t want to spend a fortune on a system that’s way more advanced than you need, but you also don’t want to skimp on essential features just to save a few bucks.

Consider the total cost of ownership, which includes not only the price of the software but also any additional expenses for implementation, training, and ongoing support. Don’t forget to factor in potential cost savings, too—streamlined HR processes can lead to increased efficiency and reduced labor costs over time.

  • Assess Ease of Use and Customization

The best HR software for your company should be user-friendly and easy to customize. Your team will be more likely to embrace the new system if it’s intuitive and straightforward to navigate. Look for software with a clean interface and clear, concise instructions.

Customization is equally important because your HR software should be able to grow and adapt with your business. Make sure the system you choose can be easily tailored to your specific needs, whether that means adding new features, adjusting workflows, or integrating with other tools you’re already using.

  • Look for Scalability and Integration Capabilities

As your company grows, your HR software should be able to grow with you. The last thing you want is to invest time and money into a system that becomes obsolete as soon as you start expanding. Look for software that’s designed to scale with your business, whether that means adding new employees, departments, or even locations.

Integration capabilities are also crucial because your HR software shouldn’t exist in a vacuum. It should be able to connect seamlessly with other tools you’re already using, such as your payroll system, applicant tracking software, or learning management system. This will help ensure a more cohesive and efficient workflow across your entire organization.

  • Research Customer Support and Training Options

Finally, consider the level of customer support and training that comes with each HR software option. Even the most user-friendly system can require assistance at times, so it’s important to have access to knowledgeable, responsive support when you need it.

Find out what kind of training resources are available, such as online tutorials, webinars, or in-person sessions. The more comprehensive the training, the easier it will be for your team to get up to speed and make the most of your new HR software. Also, don’t be afraid to ask for references from other companies that have successfully implemented the software. They can provide valuable insights into the overall experience and help you make a more informed decision.

Types of HR software

There are several types of HR software designed specifically for midsize companies. These software solutions help streamline human resources functions, improve efficiency, and simplify various HR tasks. Let’s take a look at the main types of HR software for midsize companies:

  • Human Resource Information System (HRIS)

A comprehensive system that manages employee data, including personal information, job details, and employment history. Examples: BambooHR, Zoho People, and Sage HR.

  • Applicant Tracking System (ATS)

A recruitment tool that helps companies manage job postings, track applicants, and streamline the hiring process. Examples: Greenhouse, SmartRecruiters, and Lever.

  • Payroll Software

Automates payroll processing, tax calculations, and compliance, ensuring timely and accurate payments to employees. Examples: Gusto, ADP Workforce Now, and Paychex Flex.

  • Talent Management System

Tracks and evaluates employee performance, enabling managers to provide feedback and set development goals. Examples: Twiser, 15Five, and Lattice.

  • Learning Management System (LMS)

Facilitates employee training and development by organizing, delivering, and tracking online courses and training materials. Examples: TalentLMS, Litmos, and Docebo.

  • Employee Engagement and Recognition Software

Encourages employee recognition, tracks engagement levels, and provides insights to improve workplace culture. Examples: Bonusly, TINYpulse, and 7Geese.

  • Time and Attendance Software

Monitors employee work hours, leave requests, and absence management, ensuring accurate time tracking and compliance. Examples: TimeClock Plus, Replicon, and ClockShark.

  • Benefits Administration Software

Manages employee benefits programs, including health insurance, retirement plans, and other perks. Examples: Zenefits, Rippling, and PlanSource.

  • Onboarding and Offboarding Software

Streamlines the employee onboarding and offboarding process, making it easier to integrate new hires and manage employee exits. Examples: Talmundo, Sapling, and Enboarder.

  • Workforce Management Software

 Optimizes workforce scheduling, forecasting, and resource planning to maximize efficiency and productivity. Examples: Kronos Workforce Ready, Deputy, and When I Work.

Best 10 HR software solutions for midsize companies

  • Twiser

Twiser is an innovative and user-friendly talent management system that offers a comprehensive suite of tools, including performance management, employee engagement, OKRs & goals tracking, competency evaluation to help midsize companies effectively manage their human capital. One of the standout features of Twiser is its commitment to providing excellent customer service. The company recognizes the importance of providing prompt and effective support to its customers, and has made it a top priority. 

  • BambooHR

BambooHR is a popular HR software solution that provides an all-in-one platform for employee management. It offers features such as applicant tracking, onboarding, time-off tracking, performance management, and employee satisfaction surveys.

  • Gusto

Gusto is a comprehensive HR software designed to simplify payroll, benefits, and employee management. It provides tools for time tracking, compliance, and reporting, making it an ideal choice for midsize companies.

  • Zenefits

Zenefits is a versatile HR platform that offers a range of HR services, including payroll, benefits, time and attendance, and compliance. It also includes a built-in performance management system and customizable reports.

  • Paycor

Paycor is an integrated HR and payroll solution that helps midsize businesses streamline their HR processes. Features include applicant tracking, onboarding, benefits administration, time and attendance, and analytics.

  • Namely

Namely is a flexible HR platform that focuses on providing a personalized experience for midsize companies. It offers tools for payroll, benefits, talent management, and compliance, along with a user-friendly interface and mobile app.

  • Workday

Workday is a cloud-based HR software that provides a comprehensive suite of tools for human capital management, including recruitment, performance management, learning and development, and analytics.

  • ADP Workforce Now

ADP Workforce Now is an HR software platform that offers a wide range of HR services, including payroll, benefits, talent management, and time and attendance. It also provides advanced analytics and reporting capabilities.

  • Zoho People

Zoho People is a cloud-based HR software solution that offers a variety of tools for employee management, including time tracking, leave management, performance management, and employee self-service portals.

  • PeopleStrategy

PeopleStrategy is an integrated HR and payroll solution that helps midsize businesses manage their HR processes more effectively. Features include talent acquisition, onboarding, benefits administration, and performance management.


The right HR software can streamline HR processes, boost productivity, and improve employee engagement and retention. When selecting an HR software, it is essential to keep in mind the unique needs of your organization, including the size of your company, the specific HR processes you need to automate, and your budget.

Before making a final decision, it’s important to consider factors such as ease of use, customization options, data security, customer support, and scalability. By taking these factors into account and carefully evaluating each software option, you can make an informed decision that meets the needs of your organization and sets you up for success in the long term.